Meanwhile, Intel suffered a 2 percentage point decrease. However, it still towers over its rival with a 78.8 per cent portion of the market.

In July, iSuppli had forecast that AMD would grow by just 0.5 per cent. This rise was predicted due to increased processor shipments, despite processors selling for progressively lesser amounts.

Impressive performance

"AMD's performance in the second quarter of 2007 was both impressive and much needed, as the company managed to halt the three-quarter market share advance of archrival Intel," said Matthew Wilkins, a principal analyst at iSuppli.

AMD's performance brought to an end a period of decline for the company that saw its market share dwindle by nearly 6 per cent from 16.8 per cent in the third quarter of 2006 to 10.9 per cent in the first quarter of 2007.